OREANDA-NEWS. July 21, 2011. The ceremony of signing of the Credit Agreement (the North-South railway project) between Turkmenistan and the Asian Development Bank (ADB) took place at the Ministry of Railway Transport of Turkmenistan.

The 25-year Agreement amounted US USD 125 million provides for financing of the procurement and assembly of electric power supply, alarm, communications and hardware systems on the 311-km Bereket-Buzkhun section of the Gyzylgaya-Bereket-Etrek railway.

The high-ranking officials of the Ministry of Railway Transport, the representatives of the Central Bank of Turkmenistan and the members of the ADB delegation led by Xiaoyu Zhao, ADB Vice-President took part in the ceremony.

The interest of the major international financial institutions, in particular the Asian Development Bank, in collaborating on the implementation of the project initiated by President Gurbanguly Berdimuhamedov to build the North-South transnational transport corridor, which will connect Europe and Asia and become the shortest route to the Persian Gulf for all states interested, is natural. Given the strategic geographical location of our country known from ancient times as the crossing of ‘seven roads’ rapid development of transport infrastructure in Turkmenistan becomes more promising in the context of expanding business partnerships of Turkmenistan with different countries of the world.

Underscoring the significance of the Agreement, the meeting participants emphasized that this document was a new symbol of fruitful long-term cooperation between Turkmenistan and the Asian Development Bank. In this regard the belief that partnerships would be successfully developed was expressed.

Expressing deep gratitude to the Government of Turkmenistan for granting confidence and assuring that the ADB would make every effort to complete this project in a timely and proper manner, Vice-President Xiaoyu Zhao noted that the Asian Development Bank viewed Turkmenistan as a strategic partner. Specifying the priority vectors of bilateral partnerships, the guest focused on the prospects for collaboration in the transport sector through using the tremendous economic, resource and transit potential of Turkmenistan.

Focusing on the topicality and cost effectiveness of the North-South Project it should be noted that according to observers Turkmenistan’s increasing role as the transport centre of continental significance will bring substantial benefits from transit traffic and facilitate wide international cooperation.